INTRODUCTION:

“The next world war-if ever-will not be over land, but on WATER. Globally more than one billion people lack access to safe drinking water, nearly all of them in the developing countries, including India”. Nearly one-third of the population worldwide live in areas which are water-stressed. This figure is expected to increase further by a fold by 2025. Approximately 80% of diseases in India are caused by water borne micro organisms. This is true in rural as well as urban India. However, awareness of health risks linked to unsafe water is still very low among the rural population. The few who treat water resort to boiling or use domestic candle filters. With more and more number people are becoming conscious about contaminated drinking water; the demand for water purifiers is rapidly rising especially in India. In the past few years, Indian water purifier industry has seen an exponential growth of 22% CAGR (Compounded Annual Growth Rate).

There are three types of Water Purifiers in the market:

· Ultra violet based

· Reverse osmosis based

· Chemical based

The UV segment constitutes more than 55% of the industry and has its key focus area for water Purifier manufacturers because of higher margins it offer. The Indian water purifier market has tremendous potential with a market size of approximately INR 1400 Cr ore. It is more evident from the fact that global majors such as Philips and Hindustan Unilever have stepped in the area. In the years to come, we can expect to see others entering the battle.

FEATURES OF A GOOD PURIFIER:

1. It should retain natural quality of water

2. Absolute safe for drinking purposes

3. User friendly features

4. Long life

5. In-built storage tank

6. Avoids all contamination with last point purification

7. Low maintenance

ABOUT THE PRODUCT:

WATER PURIFIER – AQUA GUARD:

Aqua Guard is the world’s most advanced in-home water purifier. Pu, a breakthrough offering of Eureka Forbes Ltd , provides complete protection from all water-borne diseases, unmatched convenience and affordability. Aqua Guard’s unique Germ kill Battery technology kills all harmful viruses and bacteria and removes parasites and pesticide impurities, giving you water that is “Safe Water". It assures your family 100% protection from all water -borne diseases like jaundice, diarrhoea, typhoid and cholera. Aqua Guard not only renders micro-biological safe water, but also makes the water clear, odorless and good-tasting. Aqua Guard does not leave any residual chlorine in the output water. The output water from Aqua Guard meets stringent criteria for microbiologically safe drinking water from one of the toughest regulatory agencies in the USA, EPA (Environmental Protection Agency). The performance of Aqua Guard has also been tested by leading scientific and medical institutions in India and abroad. This patented technological breakthrough has been developed by Eureka Forbes Ltd. Aqua Guard runs with a unique, Germ kill Battery Kit that typically lasts for 1500 liters of water. Consumer will get 4 liters of water that is as safe as boiled water for just one rupee. Aqua Guard in-home purification system uses a 4 stage purification process to deliver pure water without the use of electricity and pressurized tap water. Aqua Guard purifies the input drinking water in four stages, namely;

1. MICRO-FIBER MESH:

Removes visible dirt.

2. COMPACT CARBON TRAP:

Removes remaining dirt, harmful parasites and pesticide Impurities.

3. GERM KILL PROCESSOR:

uses 'programmed chlorine release technology and its Stored Germ kill process targets and kills harmful virus and bacteria.

4. POLISHER:

Removes residual chlorine and all disinfectant by-products, giving clear odorless and great tasting water.

COMPETITORS

Ø KENT

Ø HUL

Ø TATA SWACH

OBJECTIVES OF THE STUDY:

Ø How the EUREKA FORBES LTD “Aqua Guard‟ and other companies placing their product in to the market.

Ø To study the competitors of water purifier system. (Competitor analysis of Water Purifier)

Ø To analyze the market of water purification systems / equipments.

Ø To analyze the sales volume in the market.

Ø To find out the key area of Eureka Forbes’s water purifier system.

LIMITATION OF THE STUDY:

Time is the major constraint along with other resources and confined to only 34 respondents of Ganajam Circle.

METHODOLOGY:

TYPE OF RESEARCH:

Administered is Descriptive and Exploratory research. Mainly designed to gather descriptive information and provides information for formulating more sophisticated studies.

LITERATURE REVIEW:

Competitive marketing strategies are strongest either when they position a firm's strengths against competitors' weaknesses or choose positions that pose no threat to competitors. As such, they require that the strategist be as knowledgeable about competitors' strengths and weaknesses as about customers' needs or the firm's own capabilities.

THE OBJECTIVES OF COMPETITOR ANALYSIS:

The ultimate objective of competitor analysis is to know enough about a competitor to be able to think like that competitor so the firm's competitive strategy can be formulated to take into account the competitors' likely actions and responses. From a practical viewpoint, a strategist needs to be able to live in the competitors’ strategic shoes. The strategist needs to be able to understand the situation as the competitors see it and to analyze it so as to know what actions the competitors would take to maximize their outcomes to be able to calculate the actual financial and personal outcomes of the competitor’s strategic choices. They must be able to:

1. Estimate the nature and likely success of the potential strategy changes available to a competitor;

2. Predict each competitor’s probably responses to important strategic moves on the part of the other competitors; and

3. Understand competitors’ potential reactions to changes in key industry and environmental parameters.

What then should one expect from competitor analysis? Underneath all of the complexities and depth of competitor analysis are some simple and basic practical questions, of which the following are typical:

· Which competitors does our strategy pit us against? Which competitor is most vulnerable and how should we move on its customers?

· Is the competitor's announced move just a bluff? What's it gain if we accept it at face value?

· What kind of aggressive moves will the competitor accept? Which moves has it always countered?

IDENTIFYING COMPETITORS:

Identifying competitors for analysis is not quite as obvious as it might seem. Two complementary approaches are possible. The first is demand-side based, comprised of firms satisfying the same set of customer needs. The second approach is supply-side based, identifying firms whose resource base, technology, operations, and the like, is similar to that of the focal firm. However, the firm must pay attention not only to today's immediate competitors but also to those that are just over the horizon (such as cellphones once were to cameras, social networking sites once were to web portals, or the internet once was to video rental stores). There are three domains for recognizing the sources and types of direct and less direct competitors to which the firm must also attend. These domains represent (1) the areas of influence, (2) the contiguous area, and (3) the areas of interest. Next we will examine firm-level competition.

Identifying Competitors at the Product-Market Level:

The most direct competitor competes for the exact same customers in exactly the same way as the subject firm. It sells the same product made by the same technology to the same customers via the same marketing channels. If the firm cannot win customer patronage versus such an identical competitor, then it is unlikely that it can do any better competing against its indirect or potential competitors. Why? If the firm's exact counterpart can win in direct competition, then that same competitor should also win more against the less direct competitors. Companies, per se, do not compete with each other in the marketplace. Rather, their individual businesses compete with each other. The strategic marketing literature denotes a business as a division, product line, or other profit center with a company that produces and markets a well-defined set of related products and/or services, serves a clearly defined set of customers, and competes with a distinct set of competitors. A business is further defined in terms of a number of key dimensions, which reflect the ways and places in which it has chosen to compete. Primary among these are the products it offers and the types of customers to whom it chooses to sell and Customer function is concerned with what need is being satisfied. This is the most natural way to think about a product. Electromechanical devices, for example, can frequently be designed to satisfy any size set of functions from very narrow to very wide. Technology tells how the customer function(s) are being satisfied. For example, kitchen ranges may use two sources of thermal energy (gas or electric) or, alternatively, microwave energy to cook. X rays, computerized axial tomography (CAT scan machines), and NMR (nuclear magnetic resonance) are three different technologies used in medical diagnostic imaging. The materials used in the manufacture of the product may also differ, producing slight differences in products that are otherwise identical. Cabinets may be made of chipboard versus plywood; bottles of glass or of such plastics as PET, polypropylene, or polyethylene; and beverage cans of aluminum or steel. The customer group being served is a key dimension. Automobile parts manufacturers, for example, may choose to serve either the original equipment manufacture (OEM) market or the automotive aftermarket, or both.

Substitution-in-use:

Current thinking about identifying the competitive structure for any given product Is based on the idea of substitution-in-use. Three premises underlie the idea:

1. People seek the benefits that products provide rather than the products per se.

2. The needs to be satisfied and the benefits which are being sought are dictated by the usage situations or applications being contemplated.

3. Products and technologies are considered part of the set of substitutes if they are perceived to provide functions which satisfy the needs determined by intended Usage. Determining a product's direct competition, then, may provide an answer that says, "It depends." It depends on

(l) The number of separate and different uses or applications for the products in the market;

(2) The number of different usage situations which customers encounter; and

(3) User characteristics, including the number of product types or brands that a customer would evoke and choose among.

Using Purchase Behavior to Identify Competitors:

No matter how much logical sense an analysis such as the foregoing makes, it is based on what customers say, not on what they do. Several researchers have developed techniques which are based on actual purchase data. Exhibit 2, for example, depicts the competitive structure of the toothpaste and bathroom tissue markets estimated on the basis of supermarket scanning data.7 In this instance, the map positions products on the basis of their attributes on a per-dollar basis. As the map shows clearly, all toothpastes are not alike. Customers preferring taste over anti-cavity qualities are more likely to buy Close-Up or Aim than Crest. Furthermore, Close-Up and Aim are closer competitors than either is with Crest. The bathroom tissue market shows a similar positioning along its two primary dimensions: absorbency and softness. To say that Scott and White Cloud compete is true and not true at the same time. One might better say that Scott and Northern are in closer competition than either is with White Cloud or Charmin.

Identifying Potential Competitors:

Depending on the purposes of the competitive analysis, it may also be important to identify potential competitors. The process starts by identifying firms for whom the various barriers to entry to the industry are low or easily surmountable. These may include the following:

1. Technology:

Firms which possess the technologies necessary to operate in an industry represent one source of potential competitors. Analysis of patent activity frequently signals intentions well prior to actual entrance.

2. Market access:

In businesses where market access is a key factor for success, firms with that access frequently attempt to leverage it by acquiring additional product lines to be sold in that channel or to those customers.

3. Reputation and Image:

Brand extension strategies are based on the use of a firm's reputation in one product area to leverage its entry into another. Clairol used its reputation in hair coloring to enter into the hair dryer business

4. Operating knowledge and skills:

Regional competitors in a business often expand geographically. Entenmann's Bakeries moved into Florida and Midwestern markets from their original Northeastern base, similar to the path taken by Thomas's English Muffins. Folger's coffee was originally a regional brand on the West Coast until purchased by Procter and Gamble which expanded its distribution nationwide.

Identifying Competitors at the Firm Level:

The concept of interfirm rivalry extends beyond the product/market level. Competition can also occur as firms use related resources to bear on individual product/market level rivalry. The theory of multimarket competition describes those situations in which firms compete against each other in multiple markets.8 For example, in 1989, America West entered the Houston, Texas market – Continental Airline’s home base -- with low introductory fares.9 Continental retaliated, not by lowering prices in Houston but by lowering prices in Phoenix, Arizona, America West’s home base and then communicated its displeasure with America West’s actions in Houston. As a result, America West rescinded its low prices in the Houston market and, subsequently, Continental ceased its low-price counterattack in Phoenix. Such behavior requires that the manager understand the broader firm-level competitive set capable of such competitive behavior. One approach is to identify the different strategic groups in an industry.

DATA COLLECTION:

1. PRIMARY DATA:

(A). QUESTIONNAIRE:

A set of questions related to the research topic was formulated. Response for each question included in the questionnaire has been collected from the outlets.

(B). INTERVIEW:

Apart from collecting different responses from the outlets some extra information has been obtained through face to face interviewing activity.

2. SECONDARY DATA:

^1.Secondary research was done to build an in-depth understanding of the kiosk (outreach).

^2.Information from various published resources like „India stat‟ and other research bodies were also used to validate the market figures and cross-validate the data.

SAMPLING METHODOLOGY:

The sampling methodology used is Non Probability sampling technique -Convenience sampling

SAMPLE SIZE: 42 sample

DATA INTERPRETATION AND ANALYSIS:

1. TYPE OF WATER PURIFIERS STOCKED IN OUTLETS

Water Purifier Type	No. of outlets	Percentage
Storage	34	81.00
Inline	00	00.00
Both (Storage and Inline)	08	19.00
Total	42	100

INTERPRETATION:

It is observed from above table that, 81% (34) of outlets have stocked only storage water purifiers and 19% (8) outlets have stocked both Storage and Inline water purifiers

2. BRANDS OF STORAGE WATER PURIFIERS STOCKED IN OUTLETS:

Brand	No. of outlets	Percentage
Only EUREKA FORBES LTD Pure it	19	45.00
Pure it and Aqua sure	07	17.00
Pure it and Others	16	38.00
Total	42	100

INTERPRETATION

It is evident from above table that, 45% of outlets are preferred to stock only Aqua Guard Storage water purifiers, 17% of outlets preferred for Aqua Guard and Aqua sure, remaining 38% of outlets preferred for Aqua Guard and others like Tata swatch, Kent, Usha, Philips, Whirlpool.

3. AVERAGE SALE OF THE STORAGE WATER PURIFIERS IN OUTLETS PER MONTH

Particulars (in Rs.)	No. of outlets	Percentage
1,000-10,000	08	19.00
10,001-20,000	14	33.33
20,001-30,000	12	28.66
30,001-40,000	04	09.50
40,001-50,000	02	04.75
Above 50,000	02	04.75
Total	42	100

INTERPRETATION:

The above data presents average sales of storage water purifiers in a month. The percentage of respondents, whose average sales amount of Storage water purifiers between 1,000-10,000 was found 19%, between 10,001-20,000 was found 33.33%, between 20,001-30,000 was found 28.66%, between 30,001-40,000 was found 9.5%, between 40,001-50,000 was found 4.75%, and above 50,000 was found 4.75%.

4. BRAND WISE QUANTITY OF WATER PURIFIERS STOCKED PER MONTH

Name of the Brand	( Units stocked by outlets)	Percentage
Pure it	681	63.00
Aqua sure	062	06.00
Tata swatch	090	08.00
Kent	005	00.50
Usha	005	00.50
Rama and Ganga	240	22.00
Total	1083	100

INTERPRETATION:

The above data elicits the frequency and percentage of Purchases of different brands of water purifiers by the outlets. The percentage of units stocked by outlets were, Pure it water purifiers @ 63% (681), Aqua sure @ 6% (62), TATA Swatch water purifier @ 8% (90), Kent and Usha water purifiers stocked @ 0.5% (5) each, and the traditional Rama and Ganga steel water purifiers were stocked to an extent of 22 % (240).

5. BRAND WISE SALES OF WATER PURIFIERS PER MONTH

Name of the Brand	(Units stocked by outlets)	Percentage
Pure it	553	64.00
Aqua sure	034	04.00
Tata swatch	062	07.00
Kent	002	00.25
Usha	002	00.25
Rama and Ganga	215	24.50
Total	868	100

INTERPRETATION:

The data above elicits a lucid picture on sales of different water purifier brands in outlets. Market share of Pure it water purifiers was found 64% (553), Aqua sure was found 4% (34), Tata Swatch is about 7% (62), Kent and Usha water purifiers 0.25% (2) each, and traditional Rama and Ganga steel water purifiers has a share of 24.50%.

6. THE AVERAGE SHELF LIFE OF PURE IT

Average Shelf Time ( In Days )	No. of outlets	Percentage
1-5 days	26	62.00
6-10 days	14	33.33
11-15 days	02	04.67
Above 15 Days	00	00.00
Total	42	100

7.. RATING THE SALABILITY IN MARKET ON A 3 POINT SCALE

Salability Rating	No. of outlets	Percentage
Low (1 )	19	45.00
High ( 2 )	21	50.00
Very high ( 3 )	02	05.00
Total	42	100

INTERPRETATION:

The above data has given frequency and percentage about salability of water purifiers in market. From the data 45% of outlets are given rating on salability as Low, 50% of outlets are given rating on salability as High, and 5% of outlets are given rating on salability as Very High.

CONCLUSION:

1. The retail outlets which ever stock water purifiers, almost all the stores place storage type of water purifiers, and quarter of them do store Storage and Inline water purifiers together. But none of the outlets have stored Inline water purifiers alone

2. All the outlets have stocked Aqua Guard brand water purifiers both in Storage and Inline segment, and Vis-à-vis other brands were seen only in half of the stores.

3. Almost 3/4^th of retail outlets were selling storage water purifiers worth of Rs. 10,000 to 30,000 per month averagely and on the other hand only 1/3^rd of the retail outlets were contributing to the sale to Rs. 10,000 per month

4. Approximately 2/3^rd of water purifier retailers stocked Aqua Guard brand and Aqua Guard brand has a market share of 64% and i.e. 2/3^rd of the total water purifiers‟ sale in Warangal urban market.

5. 2/3^rd of the stores liquidate Aqua Guard water purifiers stock within 4 days from date of purchase. i.e., the shelf occupancy time of Aqua Guard water purifier is only 4 days

6. 3/5^th of the respondents (i.e., outlets) were rated Aqua Guard water purifier as high salability product in Water purifiers‟ market.

RECOMMENDATIONS:

1. All models should be displayed in retail outlets (Merchandising) and also brochures should be made available for customers, helps in providing valuable information

2. Sales person at the outlet counters should have proper knowledge about the product to take advantage of its strengths over other water purifiers

3. To restore and enhance market share further, Brand extensions should be made frequently.

4. Battery (Consumable) prices of Aqua Guard is high when compare to other brands and hence try to maintain the prices at par with competitors.

5. Improve the Germ Kill Kit (GKK) capacity, as most customers may not call the executive for purchase of batteries.

6. More kiosks to be arranged in major centers of city, to demonstrate and educate the customers.

7. Most of the customers were complaining of delay in delivery of batteries and hence company has to rectify and address it carefully.

REFERENCES:

1. http://www.pureitwater.com

2. IRJC-VOl.1,issue8,august 2012,ISSN 22773622

3. http://www.Eureka Forbes Ltd.co.in

4. international journal of management REF/1674

5. http://www.who.int/quantifying_ehimpacts/publications/saferwater/en/index.html

6. Competitor’s analysis by C.N Mukherji IRJC vol2,issue7,jan2013

7. http://www.waterfilterretailer.com/vortex-plus/vortex-articles.htm

8. http://web.mit.edu/watsan/Docs/Student%20Theses/Global/Thesis%20FINAL%20meeurekaForbes Ltd %20Jain%2012-31-09.pdf

9. http://waterpurifiers.in/the-water-purifier-market-in-india-today.html

10. http://www.pdfdocspace.com/docs/57472/pr-log---india-water-purifier-market-forecast-und-opportunities-2014pdf.html

Received on 15.10.2014 Modified on 28.10.2014

Asian J. Management 6(1): January–March, 2015 page 12-16

DOI: 10.5958/2321-5763.2015.00003.7